The demonstration project postulates the concept that the present system of regulation does not currently meet the needs of the consumer of health care and the majority of health workers, because of the inherent constraints. Therefore, alternatives are being proposed. One alternative is to place upon the employing institution regulatory responsibilities that are now delegated elsewhere and are beyond the current legal and operational responsibilities of the health care institution. This realignment of responsibility can have a great deal of impact on the consumer of health care in that he should be provided better and more efficient services and at lesser costs because of the ability of the institution to maximize the efficiency of its personnel resources. It is felt that health workers of various disciplines will also find that this system will increase their ability to proceed in acquiring higher levels of responsibility and thus greater compensation than under the existing system. Ultimately, the project could lead to institutional control of all employess regardless of their current status of regulation and would include traditional roles for health workers as well as new roles. Six to ten hospitals in one or two medical/labor market areas would form the group of initial participants. The project would be initially centrally administered and a Project Advisory Committee representing the various concerned interests would provide direction to the project until guidelines are established and a regulatory group organized. An important ancillary objective will be the development of technical aid to help participating institutions improve their ability to better regulate their workers. Some of these inputs would be functional job analysis, industrial engineering, rewriting of job descriptions and improving the institutions' ability to help better develop their employees. The education of consumers, health workers and providers regarding the impact of the project will be a continuing activity. Project evaluation will be emphasized in the last year of the activity. Funds are being sought for support of the basic staff needed to organize and implement project objectives.